Finance
An adjustable-rate mortgage (ARM) typically starts with:
AA higher rate than a fixed-rate mortgage
BA lower introductory rate that can change after an initial period✓ Correct
CA guaranteed fixed rate for the life of the loan
DEqual monthly payments that never change
Explanation
ARMs typically start with a lower introductory (teaser) rate compared to fixed-rate mortgages. After the initial fixed period, the rate adjusts periodically based on a market index.
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